Western Europe 2015 beverage outlook: ‘cautiously optimistic’
Beverage consumption in Western Europe will grow by 0.2% in 2015, predicts Canadean - the best performance since 2011.
Lower inflation is encouraging consumers to spend more on refreshments, says the market research company.
Full year consumption for 2014 declined by a ‘marginal’ 0.3%, attributed to mild winter weather. For the first time in several years, beer showed growth (up 1%), while the rate of soft drink decline was less than 0.5%.
Energy drinks and iced and RTD coffee are both predicted to grow by 5% in 2015. In alcoholic drinks, cider will grow by around 1%.
Analyst Antonella Reda said, “While the uncertain political situation in Russia could impact consumption - and we cannot rule out the risk of deflation - the 2015 outlook for the beverage industry looks more optimistic.”
PepsiCo will invest $500m in Egypt
PepsiCo says it will invest $500m this year in Egypt. The funds will be used to extend production, after the company's sales hit $1.2bn in the country last year.
Heineken’s ‘Post-Match Ritual’
The Advertising Standards Authority (ASA) has cleared Heineken UK’s ‘Post-Match Ritual’ poster, after the Youth Alcohol Advertising Council alleged it ‘irresponsibly’ implied alcohol was a key part of a successful social event.
The beer poster showed two bottles of Heineken being clinked together, with the text ‘Post-Match Ritual.’
Featured in Cardiff, the poster was promoted during the final of the Heineken Cup rugby competition.
Clearing the ad, the ASA said, “The ASA noted the CAP Code prohibited ads from implying that drinking alcohol was a key component of the success of a social event, but that the consumption of alcohol may be portrayed as sociable or thirst-quenching.
“We acknowledged that the ad suggested that having a bottle of Heineken could be a part of socialising after a match, but did not consider that it placed Heineken or alcohol as the key component of the success of that event.”
“We did not consider that the ad's image or the term "ritual", in the context in which it appeared, would be understood to refer to a mandatory practice driven primarily by the consumption of alcohol, where alcohol was the key component of the success of that social event.”
The ASA also backed Heineken last week, after the Youth Alcohol Advertising Council challenged its ‘Open your city’ advert.
Diageo and SMEs
UK lobby group Forum of Private Business (FPB), says it will continue to press large businesses to support small suppliers, after a ‘victory’ against drinks giant Diageo.
In January Diageo threatened to extend the time it takes to make payments to SMEs from 60 days to 90 days. However, it has now committed to 60 day terms.
“Following our success in challenging Diageo we will be pressing other large businesses to follow suit,” said Phil Orford, chief executive, FPB.
Coca-Cola partners with will.i.am
The Coca-Cola Company and music artist will.i.am has announced the launch of sustainable fashion and design brand EKOCYCLE in the UK.
The idea was born when will.i.am saw waste left behind at a Black Eye Peas gig, and wanted to transform it into recycled, useful items.
Launched this month in a shop-in-shop in Harrods, EKOCYCLE products include womenswear, menswear, home interiors, a 3D printer and a portable bike.
Coca-Cola says the brand’s aim is to “educate and empower consumers” to find more sustainable lifestyle choices.
“The result is an aspirational collection that challenges preconceived notions of products made from recycled materials,” it added.